Contrasting Arbor Realty Trust (NYSE:ABR) & Altisource Portfolio Solutions (NASDAQ:ASPS)

Altisource Portfolio Solutions (NASDAQ:ASPS) and Arbor Realty Trust (NYSE:ABR) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Altisource Portfolio Solutions and Arbor Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altisource Portfolio Solutions	1	0	0	0	1.00
Arbor Realty Trust	4	2	1	0	1.57

Arbor Realty Trust has a consensus price target of $9.63, indicating a potential upside of 22.38%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Arbor Realty Trust is more favorable than Altisource Portfolio Solutions.

Volatility and Risk

Altisource Portfolio Solutions has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Arbor Realty Trust has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares Altisource Portfolio Solutions and Arbor Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altisource Portfolio Solutions	$160.13 million	0.45	-$35.64 million	($1.94)	-3.41
Arbor Realty Trust	$1.17 billion	1.32	$264.64 million	$0.80	9.83

Arbor Realty Trust has higher revenue and earnings than Altisource Portfolio Solutions. Altisource Portfolio Solutions is trading at a lower price-to-earnings ratio than Arbor Realty Trust, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

41.4% of Altisource Portfolio Solutions shares are held by institutional investors. Comparatively, 57.3% of Arbor Realty Trust shares are held by institutional investors. 2.3% of Altisource Portfolio Solutions shares are held by insiders. Comparatively, 3.8% of Arbor Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Altisource Portfolio Solutions and Arbor Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altisource Portfolio Solutions	0.04%	N/A	-3.73%
Arbor Realty Trust	20.07%	11.63%	2.13%

Summary

Arbor Realty Trust beats Altisource Portfolio Solutions on 14 of the 14 factors compared between the two stocks.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.